16 Questions
Which of the following is a liquidity ratio used in financial analysis?
Cash Ratio
Is the statement 'The legal entity sole trader/sole proprietor refers to a person and not any legal entity' true or false?
True
Which of the following can be identified as an economic factor in a PEST analysis?
Inflation rate
What does Economies of Scale mean?
Reduction in the average costs of production when output is increased
Which of the following is considered as an internal financial resource?
Retained earnings
Which of the following items is reported as variable costs?
Raw materials
Which of the following situations may increase price sensitivity?
Having a higher total expenditure
Which of the following objectives of pricing strategy would be considered inappropriate?
Achieving cooperative relation with competitors to share the market
Penetration pricing is:
Typical in mass market products, like chocolate bars, food stuffs, household goods, etc.
An agreement between independent, otherwise competing companies to regulate the price and sales conditions of the products or services they offer, is called:
Cartel
Which of the following methods of evaluating capital investments considers the time value of money?
Net Present Value
The legal entity sole trader/sole proprietor is characterized by:
Unlimited liability
Liquidity ratios used in financial analysis include:
Cash Ratio
Overheads (overhead costs) are also reported as:
Indirect costs
Economic Profit:
Takes into account both implicit and explicit costs
Equity in the Balance Sheet includes:
Capital stock
Test your knowledge of liquidity ratios, legal entities, PEST analysis, and economies of scale with this quiz. Questions cover topics such as financial ratios, legal entity structures, PEST analysis factors, and economies of scale definitions.
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